Opening corporate bank accounts in 2024

Global banks are very selective about the international customers they accept. Nowadays, it is more common for a bank to reject a corporate bank account opening application, than to welcome it!

Our multi-national Clients are confused by the customer approach of global banks. The following will help you:

• Key considerations

  

  1. Before corporate bank account opening, keep the corporate structure simple!;
  2. In some countries, our multi-national Clients should expect to receive corporate bank account numbers within 3 months!
  3. Be aware of CRS reporting obligations;
  4. Prepare to supply banks a massive amount of Know Your Customer documents.

• Positive global banking trends!

  1. There are still many countries that welcome corporate bank account applications from foreign companies. For example, a Singapore company opening a corporate bank account in Germany; serving local customers without the need to register a Germany LLC. Top tier bank examples include:

     Region	Corporate bank account location	Travel required?	Must have an existing relationship with a global bank branch?
     Asia	Singapore	Yes	No
     	Malaysia	Yes	Yes
     	Philippines	Not required!	No
     	Indonesia	Not required!	No
     	China	Yes	Yes
     	Australia	Yes	Yes
     	New Zealand	Yes	Yes
     	Thailand	Yes	No
     Europe	Germany	Not required!	No
     	Switzerland	Not required!	No
     	Austria	Not required!	No
     	London	Yes	Yes
     	Luxembourg	Not required!	No
     	Ireland	Not required!	No
     	Bulgaria	Not required!	No
     Africa	Mozambique	Not required!	No
     	South Africa	Yes	Yes
     Americas	Canada	Not required!	No

  2. Before a quality international bank approves a corporate bank account for a multi-national Client, their in-house Legal and Compliance Department will request a massive amount of Know Your Customer documents from our Client. Healy Consultants Group welcomes these high standards and we shelter our Clients from this administrative overhead;
  3. In contrast to the rest of the world, USA banks maintain high standards of customer confidentiality, refusing to be a part of the global CRS initiative (click link). Without travel to the USA, we help our multi-national Clients open a Citibank corporate bank account (click link).

• Global trends negatively impacting our Clients!

  No	Global banking trends	Healy Consultants Group recommended solution
  1.	Each year in each country, all banks take longer to approve corporate bank account opening applications. Our multi-national Clients should expect to receive corporate bank account numbers within 3 months! For example, Ireland and Germany and USA.	Healy Consultants Group simultaneously submits a quality complete corporate bank account opening application to multiple global banks; We encourage our Clients use a turnkey solution (click link) or a fast business set up solution. In addition, keep the corporate structure simple!.
  2.	Unfortunately, global banks primary concern is reputation risk. Consequently, most Clients are classed as high risk including those in the commodities trading business, investment holding companies, oil and gas, financial services, etc. For now, low risk Clients are those in the IT sector;	Healy Consultants Group prepares a quality business plan for each corporate bank account opening application; thoroughly explaining our Client business including products and services, expected sales and annual net profits, potential customers and supplier etc.
  3.	Quality banks are no longer interested in opening corporate bank accounts for tax neutral companies.	We encourage our Clients use reputable zero tax companies (click link).
  4.	Top tier quality banks only welcome corporate bank account applications from customers with a high turnover. In many countries, banks like HSBC and Citibank and Standard Chartered Bank are no longer interested in serving small companies;	We approach the top 3 national banks, who are more hungry for new business start-ups.
  5.	With just 1-month notice, quality banks all over the world are closing corporate bank accounts belonging to existing customers using tax neutral companies.	As back up, our Clients to open multiple corporate bank accounts for their foreign companies
  6.	Except for the USA and in compliance with the CRS movement (click link), the majority of global banks will disclose customer information to Tax Authorities in the country of origin of shareholders and directors.	Before corporate bank account opening, Healy Consultants Group will explain to our multi-national Clients' what specific bank reporting will occur.
  7.	Many quality banks will only grant corporate bank account approval after our Client can show proof of local business in that country. For example, office premises lease agreement, staff employment contracts, customer contracts. For example, all Hong Kong and UK banks.	Healy Consultants Group will work with our Client to timely supply relevant information to the bank in-house Legal and Compliance Department.
  8.	It is common for quality banks’ front officers to welcome corporate bank account applications. However, the bank in-house Legal and Compliance Department later rejects the application.	Healy Consultants Group simultaneously submits a quality corporate bank account opening application to multiple global banks;
  9.	It is common for quality banks’ front officers to grant our multi-national Clients' an exemption from travelling to meet the bank. However, the bank in-house Legal and Compliance Department later requests the bank signatory to visit the bank for a one-hour interview.	Because of our 14-year business relationship with global banks, we aggressively and skillfully negotiate travel exemptions from banks. In each country, some banks willing to accept a skype conversation or a visit to your local branch to witness your signatory;
  10.	Because global interest rates are so low, average funds transfer bank charges approximate US$ 50.	The majority of Hong Kong banks charge just US$15 per incoming and outgoing funds transfer!
  11.	Global banks are more likely to reject quality corporate bank account opening applications from multi-national Clients' with complex corporate structures, with multiple corporate shareholders;	When submitting a corporate bank account opening application, keep the corporate structure simple! (click link).
  12.	The majority of retail banks will question or reject incoming funds transfers of US$ 5m or more;	Give your bank 3 weeks’ notice of the incoming funds transfer.
  13.	Because of low interest rates, it is common for our multi-national Clients to not have a dedicated bank relationship manager. Instead, you need to call the bank hotline to speak to a junior bank relationship officer with broken English! Painful;	Because of our 14-year business relationship with global banks, we aggressively and skillfully negotiate for a dedicated bank officer for our multi-national Clients.
  14.	It is common for global banks to request Know Your Customer documents to be i) notarised and ii) attested at your local embassy and iii) officially translated into the local language of the bank. Causing significant engagement delays and third-party costs;	On behalf of our multi-national Clients, Healy Consultants Group will i) aggressively and skillfully negotiate an exemption from this administrative burden or ii) project manage the timely notarisation, legalization and translation of the documents.;

• How we optimize the probability of corporate bank account approval?

  Because of our 14-year business relationship with global banks, we employ the following strategies to timely secure corporate bank account numbers for our multi-national Clients’:

  1. We supply our Client a detailed comparison table contrasting different global banking solutions (click link), including corporate bank account opening criteria;
  2. We prepare a quality complete corporate bank account opening application including a quality business plan and supporting due diligence documents;
  3. We submit the same to multiple global top tier banks and secure a welcome email from our preferred bank relationship officer. At this stage, we establish the probability % of successful corporate bank account approval;
  4. On behalf of our multi-national Clients’, Healy Consultants Group daily communicates with the bank. We aggressively and skillfully negotiate i) the quantity and quality of Know Your Customer documents and ii) bank signatory travel exemptions and iii) the optimum corporate structure of the entity, keeping it simple!.

• Describe the corporate bank account opening process to me!

  Refer to this web page (click link) to view detailed steps and timelines;

• Common Know Your Customer documents requested by banks in-house Legal and Compliance Department:

  1. Attested and notarized Certificate of incorporation and M&AA;
  2. Memorandum and articles of association or company bylaws;
  3. Shareholders, beneficial owners and directors’ passport copies and recent proof of address;
  4. Latest three months bank statement for entities with existing corporate bank account;
  5. Professional reference letters from other banks, lawyers and accountants;
  6. A quality detailed business plan;
  7. Certificate of incumbency or good standing from the company;
  8. Tax returns and wealth statements from bank signatory and shareholders and directors;
  9. Group structure/organization chart;
  10. Lawyer letter confirming company and good standing;
  11. Proof of local business including a signed lease agreement or customer or supplier contracts.

Healy Consultants’ video on International corporate bank account opening
Contact the presenter: Chrissi Zamora, CEO Middle East & Europe, Healy Consultants Group